Harrod Domar Model Flashcards
1
Q
Harrod domar model
A
Investment, saving and technological change are required for economic growth( developing countries do not have this)
2
Q
Harrod- domar model: rate of growth=
A
Savings ratio/ capital output ratio
3
Q
Foreign currency gap
A
Current account deficit > value of capital inflows
4
Q
Capital flight
A
When money leaves the economy through outward investment
Triggered by economic threat
5
Q
Demographic factors
A
High birth rates links with poverty and environmental damage
6
Q
Debt
A
Links with poverty and inequality
